When Progresso makes Cajun gumbo soup for Louisiana and nacho cheese soup for Texas, what kind of segmentation is it practicing?
A. Geographic
B. Behavioral
C. Demographic
D. Psychographic
E. Political
Answer: (A) Geographical segmentation involves customizing products and services for groups of customers based on where they reside. That is what Progresso Soup seems to be doing in this question. Therefore, the correct answer is (A). Behavioral segmentation (B) is done based on usage behavior. That is not what the question describes. Similarly, demographic (C) and psychographic segmentation (D) can be ruled out since the former deals with users' demographics such as age, occupation, and income while the latter deals with customers' lifestyles. There is no such thing as political segmentation (E), so that can be eliminated.